Carbon Border Adjustment Mechanism (CBAM) – What you need to know and CTB Group measures
There is international cooperation between governments, industry sectors and organisations to achieve net zero emissions by 2050. It is an imperative Cooper Turner Beck is driven to achieve in support of global efforts to keep planetary warming below 1.5°C and reduce the effects of impending natural disasters. In this article we’ll explain what CBAM is, what it means for customers of CTB Group and how it works to support the net zero 2050 agenda.
Carbon Border Adjustment Mechanism (CBAM) – what is it?
In the European Union’s words, CBAM is: “The EU’s tool to put a fair price on the carbon emitted during the production of carbon-intensive goods that are entering the EU and to encourage cleaner industrial production in non-EU countries.
By confirming that a price has been paid for the embedded carbon emissions generated in the production of certain goods imported into the EU, the CBAM will ensure the carbon price of imports is equivalent to the carbon price of domestic production and that the EU’s climate objectives are not undermined. The CBAM is designed to be compatible with WTO rules.
CBAM will apply in its definitive regime from 2026, while the current transitional phase lasts between 2023 and 2025. This gradual introduction of the CBAM is aligned with the phase-out of the allocation of free allowances under the EU Emissions Trading System (ETS) to support the decarbonisation of EU industry.” (EU Commission)
How we help shipments to move seamlessly through European borders with our CBAM compliance procedures
The European Commission selected six sectors to be in the scope of the new regulation, the steel industry being one of them. CBAM has created new administrative processes, procedures, and technical challenges for manufacturers in energy-intensive industries. For example, Cooper Turner Beck Group is now required to provide detailed emissions data on imported goods or steel products supplied to customers in the EU.
Significant internal resources have been applied to support the group’s compliance with CBAM. This includes understanding not only the implications of CBAM but also the processes and information that need to be established to achieve compliance.
“CTB Group has four CBAM declarant manufacturing facilities, as they import CBAM goods from outside the EU. We’re proud to report that all quarterly CBAM declarations to date have been submitted on time and in full.”
Dr Victoria Hill CMIOSH CEnv – Head of ESG & Safety
Under 10% of EU organisations required to comply with CBAM have matched this achievement to date. As part of this process, we have been actively supporting the provision of carbon data on our products to help customers comply with CBAM.
The accurate measurement of product-level carbon data and CBAM-compliant data is accessible across a number of Cooper Turner Beck products to support customer requests. Full coverage of product-level data is an ongoing effort, and we continue to improve our interpretation and understanding of the new regulations and how they apply to our industry.
Access CBAM Compliant Carbon Data from CTB
We’re aware that many organisations in the industries served by Cooper Turner Beck, including Energy, Construction & Infrastructure and Heavy Industries, also need to comply with CBAM obligations. And so, we are committed to the accurate and fast processing of CBAM-compliant carbon data to support customer requests.
The introduction of the UK CBAM is expected to come into operation in 2027. In preparation for this, we are developing full supply chain mapping and product lifecycle analysis to strengthen our capabilities to support customer data requests.
How it works in practice and at present
- All requests for carbon data and CBAM data are handled centrally by the ESG team at Cooper Turner Beck.
- Customers request data at the point of ordering or shipment or alternatively when a declaration is due.
- This request is processed and returned to the relevant department at our customer organisation.
- Carbon data can be added to shipment paperwork or provided in the standard CBAM installation data template.
We’re working closely with customers during the transitional period to ensure the data provided meets expectations.
Our efforts in this area support our ESG ambitions, which are detailed in the first edition of our ESG report, accessible here. If you’d like to ensure your shipments move seamlessly through EU borders with the required documentation completed ahead of time, Cooper Turner Beck Group is here to help.
For further information, please speak to sales – contact details here: https://www.cooperturnerbeck.com/contact/